Specsavers: SWOT and PESTLE Analysis

1. 0 Introduction

This report will provide a detailed evaluation of Specsavers current corporate and business appraisal - SWOT examination. This will point out the companies' power, weaknesses, opportunities and risks, which will help the company's management, understand where the organisation is currently. A Five Forces environmental evaluation of the industry will look at the local, nationwide and global affects of political, financial, social and technological factors (by means of a PESTEL research) to comprehend opportunities and dangers facing Specsavers currently and in the future. This will provide an analysis of the external business environment where Specsavers works. This analysis will highlight the fundamental changes that the eye good care industry is undergoing, especially; in defence to the unpredictable environment it encounters from exogenous pushes (essential oil prices, inflation etc) and endogenous forces.

2. 0 SWOT Evaluation of Specsavers

Specsavers main strength is its local knowledge of customers within the united kingdom and Worldwide, providing a trusted eye good care service, affordable glasses and contacts to a number of countries in Europe and worldwide. . In addition, it has a solid work force with experienced opticians, who carry out professional attention test using the latest optical equipment. Its major weakness is its insufficient luxury creator brand consciousness nationally and globally relative to its major competitors like Selfridges. Specsavers encounters external threats from existing conclusion (Boots, Vision Exhibit) on the market place for eyes care and attention as well as cheaper low priced brands from the Far East. Changes in Socioeconomic conditions can also play a part in Specsavers future success, as clients are now more environmentally mindful and ethically informed. The main competition are promoting a strong sense of Corporate and business Social Responsibility agenda. Specsavers must be mindful of any potential takeover bids from famous brands Boots and Eye-sight Exhibit Group. See Shape 1 below for a complete SWOT evaluation of Specsavers.

Figure1: Specsavers SWOT Analysis

The SWOT analysis of the company demonstrates its talents are in its large selection of products and its reputation for carrying out a specialist eye treatment service, large investments in latest optical and reading aids equipment and its international existence. However, main weaknesses are low brand understanding for designer structures.

Currently the business only distributes lots of developer brands of casings and provides it brands mainly through its stores. Therefore, it offers opportunities to project into e-commerce solution through web requests of designer casings. Also access additional capital and consider retail partnerships. The business faces various threats from new and existing competition, monetary recession and due to its low brand awareness in designer (luxury) market portion faces potential takeover bids.

3. 0 The Five Causes Model

Porter explains that there are five forces inherent in market, that may jointly determine the strength of competition and profitability of Specsavers and the eye care industry. The foremost is the threat posed by new entrants, much like the growth in designer casings being proposed by Selfridges, Harrods, and Rackhams etc. The second reason is the threats from substitutes, laser skin treatment v spectacles, and the growing demand in laser beam vision modification surgery. The 3rd drive is the dangers from the bargaining vitality of purchasers, is this strong for both Specsavers and the whole eye attention industry with a big number of different suppliers, hence, the aggressive charges strategy, two for one offers etc. This results in a very strong competitive rivalry on the market. That is intensified as a result of little if any differentiation in the service offered. Finally the threats from the suppliers bargaining ability, this is very strong in the attention care industry for just two reasons, you are highly specialised products supplied by few manufacturers, hence, Norville Optical who are able to command a very favourable terms and second is the existence of many clients within the industry.

4. 0 Alternative Environment - PESTLE Analysis

All of those (political, economic, public, complex, legal and environmental) factors will to some extent apply to the eye treatment industry.

POLITICAL - changes in firm tax in the foreseeable future within UK and internationally. With functions in European countries and throughout the world, is the political plan favourable to overseas investment. The introduction of Carbon Taxation may possibly also pose another hazard to Specsavers.

ECONOMIC - the high-end eyes wear industry is vary downturn prawn and also very sensitive to changes in prices.

SOCIAL - changes in consumer preference and lifestyle signify both opportunities and dangers for the eye care industry. Opportunities in conditions of designer brand name eye wear are actually favored by high disposable income groups as well as the growing development in spectacles as a fashion accessory. The aging society in UK and throughout the globe will have a favourable impact upon the demand for eyesight care products and services. The risks are in terms of alternative perspective correction treatments like laser and lack of skilled labour, will the educational system support future certified opticians and audiologists, if not there may be too little supply.

TECHNICAL - Changes in retailing methods therefore spec sales via the web is now a standard place in eyesight wear, online visit booking with patients getting an email filled with their visit details and booking guide when they book online. Paperless operation, the management and supervision of the company are undertaken on IT systems, which are reached through secure servers; provide versatility in the running of the stores. Specsavers has put in place a new version one system for document management in order to provide a centralised accounting function for its 830 UK and European stores. The introduction of the next technology lenses will also lead to scientific opportunities in conditions of cost lowering and improvement in quality of lens.

LEGAL -Risks are in conditions of future legislations for health and environmental issues. Specsavers must keep an eye on data protection act (freedom of information action) as it'll store a large amount of patients' personal details. Do the current (or future) work laws provide an advantage or drawback to the business enterprise?

ENVIRONMENTAL - The power sources used, specifically oil has huge ecological/environmental implications. The threats are in terms of fines and surge in cost of recycleables. The launch of Carbon taxation will have an impact on Specsavers future success.

5. 0 Conclusion

Specsavers is plainly an organisation with a solid brand consciousness and reputation for providing an inexpensive eye attention service, with procedures in several countries in Europe and throughout the world.

Specsavers environmental examination via the SWOT, PESTEL and Five Pushes showed that the attention health care industry is experiencing an alteration in terms to become more socially responsible and customer service focused (anticipated to intense competitive rivalry). Specsavers must view those environmental changes as a chance rather than a risk. In order to succeed in the near future Specsavers must see employees as the key to competitive edge within an industry that is highly strong.

Corporate and human being learning resource strategies are developed concurrently. Specsavers needs to view its human resources as the driving a vehicle force in the development of its overall business technique for the future. There has to be an overriding emphasis on growing optician's skills through interval training programme (2 yr graduate program) and continual investment in R&D.

The future environment of Specsavers will largely be impacted by the advantages of the Carbon tax, which will threaten Specsavers capacity to continue to provide affordable affordability glasses and contacts, as additional taxes will reduce margins, that could lead to increase prices.

The internet will continue steadily to shape the way Specsavers performs as a business, currently utilizing it generally for online session arranging, but as the cultural fads change, consumers with busy lifestyles will opt to use online searching for ordering their casings and contacts. Specsavers has in recent times implemented a web doc management system, to permit it to centrally control payment of supplier's invoices. It has resulted in significant time savings and operational costs because of this of improve efficiency and freeing up of space for storage.

Word Matter =1, 550

References & Bibliography

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